TotalEnergies Eyes $9B Oil Venture In Block 58 Offshore Suriname, Production To Begin In 2028

TotalEnergies SE TTE announced launching the development studies for a large oil project in Block 58, offshore Suriname. The project will represent an investment of approximately $9 billion.

TotalEnergies is the operator of Block 58, with a 50% interest, alongside APA Corporation APA.

The detailed engineering studies of the project will start by the end of 2023, and the Final Investment Decision is expected by the end of 2024, with a first production target in 2028.

"This development is in line with TotalEnergies' strategy aiming at the development of low cost, low emissions oil resources, and leverages on our company's expertise in deep water projects. We will thus contribute to improving the well-being of the people of Suriname," said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

TotalEnergies will continue working closely with the national oil company Staatsolie to reinforce the actions in favor of local content.

TotalEnergy's Block 58 could become Suriname's first commercial offshore project, Reuters reported.

Suriname's oil prospects are drawing attention, the report added. Its fields are next to Guyana's Stabroek block, where Exxon Mobil Corporation XOM struck 11 billion barrels of oil.

This decision is pivotal for large-scale energy projects to authorize development, it added.

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Price Action: TTE shares are trading higher by 0.80% to $66.50 on the last check Thursday.